R
ightmove announced a £18 million boost to AI spend for 2026‑28, aimed at digital home valuations, “Style with AI” listings and smarter search tags. The news sent the stock tumbling, wiping out up to 28 % of its market value. Yet the company projects only 8‑10 % revenue growth over the same period, below its own guidance, and has delayed targets for rentals, new‑home, overseas and commercial listings. The backdrop is a sluggish UK housing market, with weak buyer confidence, high rates, tax‑hike fears and modest price growth. Competition now includes OnTheMarket and AI‑driven search tools like ChatGPT, which could siphon traffic. The situation shows that ambitious AI plans cannot hide underlying momentum gaps; investors face a medium‑term bet that sacrifices short‑term margins for a platform shift, with payoff uncertain if demand stays weak.